Foreign Exchange : Recent Surge of Gold Prices Subsides

The recent surge of gold and silver prices subsided Friday, after central banks intervened to support the dollar. But the dollar still showed losses against all major currencies, hitting another record low against the Japanese yen in Tokyo.

Republic National Bank in New York at 4 p.m. EDT quoted gold at $432.50 an ounce, up $1 from Thursday’s late price. At the New York Commodity Exchange, gold stood at $433.00 an ounce, up 20 cents from Thursday.

Earlier in Europe, gold had soared to its highest level in six months, gaining $9.50 in London from Thursday’s price to $432 an ounce, its first time over the $430 level since October 1986.

In Zurich gold closed at $432 an ounce, up $10, after having risen $10.33 an ounce to close at $431.74 in Hong Kong.

Silver slipped at the Comex, closing at $6.780 an ounce, down from Thursday’s $6.832. Earlier in Zurich, it had touched $7 an ounce before profit-taking brought it down. In London, silver was quoted at $6.83, its highest level since Dec. 10, 1984 when it stood at $6.88.